Small Business Resource: Internal Revenue Service Programs

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Internal Revenue Service Coronavirus-Related Paid Leave

Summary

• IRS established two new refundable payroll tax credits to immediately and fully reimburse business owners, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.
• Employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employee’s children’s schools are closed or child care providers are unavailable. But if the business employs less than 50 employees, there is an exemption for the paid leave to care for a child if the viability of the business is threatened.
• Health insurance costs are included and employers are not subject to payroll tax liability.

Eligibility

• Businesses with fewer than 500 employees.

How to Apply

• There will be an immediate dollar-for-dollar tax offset against payroll taxes and if a refund is owed, the IRS will send the refund as soon as possible.
• Businesses can retain and access funds that they would pay to the IRS in payroll taxes if they need immediate relief. In addition, if the funds are not enough to cover the costs of paid leave, employers can submit a form to receive an expedited advance from the IRS. It does not look like the IRS has released the form yet.

More Information:

• Click here to access additional information about the IRS's Coronavirus-Related Paid Leave, straight from the IRS website.
• Click here for the IRS's full COVID-19 Resources Website.

For more information on any of these resources, please contact one of the HCMP attorneys who contributed to this article:

Robert Van Cleve | robert.vancleve@hcmp.com | 206.470.7636